Johannesburg - The Competition Tribunal has approved the
merger between Blue Falcon and Denny Mushrooms.
In the transaction, Blue Falcon intends to acquire all the
ordinary share capital and claims in Denny Mushrooms from JSE-listed consumer
goods group AVI [JSE:AVI].
Blue Falcon is controlled by RMB Ventures Six, the
investment banking arm of FirstRand [JSE:FSR], while Denny Mushrooms produces
and processes fresh, canned and value-added mushroom products such as soups and
sauces.
The Competition Commission earlier assessed the merger and
concluded that it was unlikely to raise significant competition concerns. It
therefore recommended that the tribunal approve this transaction without
conditions.
AVI had previously said: "While Denny is a sound business with the leading national brand in the fresh and canned mushroom categories, the importance of branding in the 'fresh to market' produce segment in general and in the fresh mushroom segment in particular has declined over the past several years and this category is no longer strategically aligned to AVI's growth ambitions."